now for such an outrageous lie? >> i refer to you, mr. morgan -- >> i put it to you now. >> you've been putting it to me for the last five minutes. i'm responding. what i said was cloaked by parliamentary privilege. i'm quite sure your it's not in the book. i have never boast ed about it. >> i feel no need whatsoever to apologize. >> okay. clearly no agreement on that. we'll continue to keep you posted on that story. good morning to you i'm kiran chetry. the prime minister's term to take the hot seat in the uk

hacking scandal. david cameron minutes away from a show down. two major proposals in the trillion dollar showdown over the nations debt. the first is called a possible break through. the second plan is under attack by democrats. all this next on "american morning". thanks for being with us, it's wednesday, july 20th, this "american morning". i'm kiran chetry. >> i'm ali velshi. do we have a lot going on today. british prime minister david cameron is about to get grilled by parliament. the newscorp phone hacking hearing begins in 30 minutes. cameron is expected to face tough questions about what some are calling a cozy relationship with rupert murdoch's media empire. >> go to used of parliament this morning.

fireworks yesterday. the consensus, though, is david cameron is not likely to lose his job over this but that he's under enormous pressure right now. >> reporter: he's definitely is. he's got a lot to defend himself today. basically, this is a special day in parliament. they were supposed to go into summer recess but instead they are having this special address by the prime minister here. he's really going to try to prove a point here, that he's is going to underline the phone hacking scandal, say this is how i dealt with it and now we need to move on. here is how he put it when he was in africa for a trip. >> i don't underestimate the problem. parts of the immediate okay dreadful, illegal acts. police have questionses to answer about corruption and a failed investigation. politicians have been too close to media onus. these are big proximate but we're a big country and we'll

solve it. >> reporter: now, the main issue he's going to have to teal with is why he decided to hire andy colson who was later arrested as part of the investigation into the phone hacking. this is something that was brought up yesterday in the hearings and it turns out that his chief of staff actually warned the british police not to brief the prime minister on these phone hacking issues. lawmakers today are clearly going to try to get to the bottom of this as you can imagine from the opposition labor party. >> david cameron said he didn't know about this either. thanks so much. >> it's going to be hard to top the intensity of what happened yesterday. the theater of yesterday's phone hacking hearings. two hours after telling parliament it was the most hufble day of his life, rupert murdoch took a pie in the face.

a 26-year-old man armed with a pie full of shaving cream nails rupert murdoch from behind saying you greedy billionaire and it didn't take long for murdoch's wife there, leapt to her husband's defense. she tried to clock the guy. you see him slapping him. >> she landed a hit. it didn't actually hit rupert murdoch in the face. people were running. he did have to take off his coat. >> police took the 32-year-old jonathan bowles away. before the attack he tweeted it's a far better thing i do now than i've ever done before. >> it's interesting because we had shots of him, of the guy who did that who is now in trouble for doing that. he had shaving cream all over his face. clearly shows how quickly people jumped to rupert murdoch's defense. anyway he said he was humbled,

but rupert murdoch is not apologizing or accepting a shred of blame for the corruption scandal that's rocking the media empire. murdoch and his son james faced hours of grueling testimony. >> do you accept that ultimately you are responsible for this whole fiasco. >> no. >> you're not responsible. who is responsible? >> the people i trusted and then maybe the people they trusted. >> murdoch's heir apparent, his son james it was suggested that james turned his back when victims were hacked. >> are you familiar with the term woeful blindness? >> would you care elaborate? >> it is a term that came up in the enron scandal, and willfuled blindness is a legal term.

it states if there's knowledge you could have had and should have had but chose not to have, you are still responsible. >> do you have a question? >> the question was whether you were aware -- >> i'm not aware of that particular phrase. >> rebekah brooks, murdoch's former new york chief as appeared. she resigned on friday. brooks denies responsibility for the alleged hack being at the newspaper she once ran and insists she was shocked and disgusted when she heard reports about murdered school girls' phone being tapped. >> of course i have regrets. the idea that millie's phone was accessed by someone being paid by "news of the world" is abhorrent to me as it is to everyone in this room.

and this is an ultimate regret that the speed in which we have found out and tried to find out the bottom of this investigation has been too slow. >> it's not clear if rupert murdoch helped or hurt his cause with his testimony. many observers felt that he looked old even foggy at times. this tweet from howard kurtz, quote, every detail of scandal that rupert says he's not familiar with makes him look more disengaged as a ceo. >> murdoch looked out of it. he looked like a ceo whose not in touch with what's is going on in his own company even as the evidence began to mount of wrongdoing at "news of the world" and overseen by people he had put in place. >> shareholders, ironically seem to like what went down inside parliament. newscorp stock price rebounded by nearly 6% after multibillion dollars worth of losses in the

days leading up to the hearing. on another topic that's important to you. duelling proposals to keep the government from defaulting on his obligations, 14 days to go before the u.s. can't cover its bills. the house passed the cut, cap and balance plan. it cuts spending, caps the spending and calls for a constitutional amendment for washington to balance its budget every year. this plan has no chance of passing the senate. even if it did president obama repeatedly said he would veto it. >> as a symbolic measure to get the tea party people in congress cover. the president is praising a different proposal and this is the one from a bipartisan grouch senators called the gang of six. mix of spending cuts and tax changes along with upbeat earnings went well with investors. the dow posting its biggest gain the year up more than 200 points. the nasdaq and s&p 500 were also up. let's go to the white house

now. what's the sense at the white house about these two sort of things that have developed, the cut cap and balance but more importantly the gang of six proposal. >> reporter: that cut, cap, balance plan that was passed yesterday by the house, very conservative plan. that's something that the white house, obviously, president obama has issued a veto threat. it's not expected to get anywhere. this was the big development yesterday. shortly before that vote in the house on the cut, cap, balance plan, president obama came out, made this unscheduled appearance in the briefing room and really kind of threw his weight behind this gang of six plan. the gang of six being that bipartisan grouch senators that for months had been working on a deficit reduction plan but had floundered as one of the republicans stepped away from that group. that republican, senator coburn has rejoined the group and the group presented their bill for deficit reduction yesterday to a

few dozen senators. this is a pretty big plan, $3.7 trillion in deficit reduction or deficit savings often years. that's pretty close to the number of the $4 trillion that president obama was pushing. so president obama saying generally speaking he likes the idea here, but you have to take a look at this plan because it includes tax increases which is you know house republicans have been completely resist search warrant to and entitlement reform which democrats have been resistant to. this is politically very difficult on both sides and the clock is ticking. >> it would be possible for congress to tackle a plan like this before the august 2nd deadline? >> reporter: if you talk to the two top democrats in the senate, harry reid and dick durbin the answer is no. dick durbin said this isn't ready for prime time. congress especially the senate doesn't turn on a dime it takes a lot of time. this would create a further problem here.

if you can't get something a big deal together or some sort of compromise in time for hitting that debt ceiling how can you go for this big plan because there are republicans who are not going to want to increase the debt ceiling and some republican votes are definitely needed in the house. they don't want to increase that debt ceiling without a deficit reduction plan. all eyes on this fall back plan, a more modest deal with smaller use that senator reid and senator mcconnell are working out in the senate. the president said that's still the fall back, the bare minimum that needs to be done. >> it's just strange because you got some people saying can't get this deal done, not hopeful. other people say there's stuff going on behind-the-scenes. then there's this gang of six. leaders saying it can't be done in time. hard to keep track. we're that you feel you are there helping us to do that. >> reporter: it's difficult. another budget fight this time kids are caught in the

middle. the memphis school board voted to delay the school year until the district gets $55 million that it says the city owes it. the only board member who voted no said you can't ask the city for money it doesn't have. here's both sides. >> someone has to assume responsibility for the education of the children in the city of memphis and i don't think the city council can be exempt. >> i'm in support of having assurances and moynihan in the back. but i think 55 was an unreasonable amount to be expect at this particular time. >> now the school district doesn't get the money by august 1st when teachers are supposed to report network it says it can't cover their paychecks. they also said they already laid off about 1500 people. >> and the kids are caught in the middle. more trouble for air traffic controllers. the faa says it removed one from

his post earlier this month when he failed an alcohol test during his shift. the controller worked at the denver center which is in charge of high altitude air traffic over several states. there were no problems with operations or any air during the shift but, again, testing positive for alcohol during his shift so relieved from duty. beware of little dog. good thing they were wearing masks. l.a. county police released the video of two robbers one with a rifle who were chased down the street by a chihuahua. they got away with some cash but didn't stick around for the rest. >> that little dog had no idea he weighed 10 pounds. he said, i don't know who you two are but get the heck out of my store. >> the dog is so small. he hardly gets in the picture there. muscling off two guys. one out of every five fast

food restaurants may be misleading you when it comes to counting calories. >> what? >> because you go there to eat healthy. a nutritionist went from chain to chain. she found 20% of the menus at those restaurants low balled the calories. more on what she found in our 7:00 hour. we'll break it down for you. i don't know if you want to know this. >> it explains why i'm getting a little fat. >> you are not. >> our question of the day, we want to know what your favorite fast food guilty pleasure is. let us know on facebook. be honest. >> we have some good ones. >> your going to reveal yours right now? >> i can reveal one every time you ask. i'll start with the next one. >> blooming onion. >> that's a good one. >> that's not good for you. probably has two weeks worth of

fat. but it's an onion so it's a vegetable. still to come this morning, it's why they call it extreme sports. a motor cross rider flies off his bike in mid-air. what comes up must come down. >> and courtland, new york is usually buzzing waiting for the new york jets to open training. >> hacking allegations this morning. guess who they are claiming they victimized. we'll explain a turning of the tables, so to speak. 15 minutes the hour.

it's the android-powered phone that mixes business with pleasure. so let's get our work done, america, so we can all get back to playing "angry birds." the motorola expert from sprint. trouble hearing on the phone? visit sprintrelay.com. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto insurance quote. u.s.a.a. we know what it means to serve. you know, the ones who do such a super job, they're backed by the superguarantee®?

only superpages®. wherever you are, wherever you're going, you'll find the super business you need. so next time, let the good guys save the day. get the superguarantee®, only at superpages®. in the book ... on your phone or online.

welcome back to "american morning". a potential break in a major hacking investigation that's under way here in the u.s. the fbi arrested at least 16 people for alleged cyber attacks. >> most of them are thought to be connected to this hacking group which you've heard referred to as anonymous. it attacked pay pal and other credit card websites. susan candiotti joins us now.

this is sort of an umbrella hacking group? >> didn't they try to claim today they hacked newscorp? >> there's some alleged connection to that too. so, yeah. certainly had they are not so anonymous any more. they had names like reaper and toxic. so by the numbers we're talking about nine states were involved. 35 search warrants served in those states. at least 16 people have been arrested. more people in europe as well. so this is a huge case. and what happened was this they spread out yesterday executing search warrants, seizing records and computers and making all these arrests in all of these states. a lot of these searches took place in the state of new york but no arrests were made in that particular state. all of this had to do with taking revenge according to the fbi, taking revenge on what had happened to julian assange after

the wikileaks scandal, so people who supported him who were unable to make donations to pay pal, because pay pal cut them off, so these hackers are suspected of going into other computer systems and trying to mess them up. it's called denial of service where they overload the system so much -- >> if you're trying toe use pay pal you can't get to it. they did the same thing to visa and mastercard. >> this group got them to support them and overloaded other systems. the feds went after them. so they are charged with conspiracy and in a lot of trouble. does this mean the end? no. cyber security big thing and the feds say the investigation goes on. >> they are never ones to hide the claim of responsibility. they proudly said -- >> that we did this. >> if it is indeed true they hacked newscorp and had emails that they claim they are going to dump like a document dump today.

i don't know if it will happen. it will be interesting if it does. >> a lot of people will be watching. they don't like -- they do like to brag about it. post it on other websites. look what we were able to do or tweet about it. it doesn't help their case because you alert authorities about what's going on. >> all right. susan, thank you so much. little more than half an hour we'll break down why the fbi is so concerned about these cyber attacks. we'll be talking to the president of a cyber security group. the big question is are we armed to deal with them? >> let's check on what's going on with the weather. jacqui jeras is in the severe weather center. >> we're watching a couple of storms and keeping our eye on the heat which has been so unbearably brutal. i want to show you, to help put it in perspective. this is from noaa. this shows you how the heat has

been building since july 13th. making its way up to the north and building to the east. this is a huge dome of high pressure which has been bringing temperatures in the 90 to 100 degree plus range and there you can see the forecast by tomorrow finally bringing a little relief to parts of the upper midwest. you got to get through today first. one of the big things that's been making this heat so brutal, there's no relief at all. look at the heat index. minneapolis it feels like 88 degrees to wake you up this morning. 76 in cedar rapids. look at chicago being feels like nearly 80 trees. so this heat still fwripg the nation's mid-section with advisories here. great weather up in new york and along the east coast but the excess jeff heat watches have been posted tomorrow it heads into the northeast and mid-atlantic and will stick around into the weekend. back to you. so this motor cross rider hitting the eject button.

he went air borne. during a race in minnesota. totally separating from his bike and falling over 30 feet to the ground. apparently he was okay. they are daredevils. they seem to cho how to land. >> he got back on his bike and finished the race. he went from 35th to 14th after that. i don't under that. >> still to come this morning, prime minister david cameron moments away from testifying in the uk phone hacking scandal. he'll have to explain this alleged cozy relationship between members of the government including himself and rupert murdoch's media empire. >> plus the space shuttle "atlantis" on its way home. i spoke with the crew earlier this morning. here are their thoughts in being part of the last shuttle mission of all time. >> we want to know what's your favorite fast food guilty pleasure. we'll get a ton of response. we thought it would be fun to

take a break from talking debt ceiling. >> we're getting a remarkable response. we'll share your comments throughout the morning. [ male announcer ] get ready for the left lane. the volkswagen autobahn for all event is back. right now, get a great deal on new volkswagen models, including the jetta, awarded a top safety pick by the iihs. that's the power of german engineering. hurry in and lease the jetta s for just $179 a month. ♪ visit vwdealer.com today.

. 27 minutes after the hour, minding your business this morning. the dow jumped 200 points yesterday making at any time best day the year for blue chip stocks. strong housing data and corporate earnings reports pushed stocks higher. apple breaking records with its earnings report. the company announced profits doubled last quarter. the stock also surged over $400 a share in after hours trading.

20 million iphones were sold last quarter. that's a new record. more big earnings report on tap today, altria which owns philip morris, blackrock and united technologies report earnings in the next couple of hours. american express, e-mail and intel announce after the close bill. investors like's rupert murdoch's testimony to parliament yesterday. company shares surged 5%. the murdoch family still lost about $750 million in company stock holdings since the scandal broke. new mexico, tennessee, maryland, virginia, south carolina are under a review for a possible downgrade. moody says these states are most vulnerable when it comes to debt talks in d.c. people employed at government data centers across the united states will lose their jobs. the "new york times" reporting

40% of the federal government's data centers will be shut down in a move towards cloud computing which means storing information remotely through internet providers. don't forget for the very latest news about your money check out the all new cnn money. "american morning" will be back right after this break. [ jerry ] i'm a grandfather, a retired teacher,

and i count on social security. here's what i'm not... a pushover. right now, some in washington want to make a deal cutting the social security and medicare benefits we worked for. with billions in waste and loopholes, how could they look at us? maybe we seem like an easy target... until you realize... there are 50 million of us. [ female announcer ] tell the politicians: cut waste and loopholes, not our benefits.

the british prime minister making an emergency statement in moments on the newscorp phone

hacking scandal, a day after rupert murdoch said don't blame me for what my paper did. nearing the goal line. nfl players and owners closing in on a deal that could end the lockout, maybe saving training camp and the small towns that depend on it on this "american morning". it is 32 minutes after the hour. you are looking at a beautiful shot of new york city from our studios here in new york. welcome back to "american morning". it looks nice but hot out there. >> we start the half hour with some breaking news. crunch time for david cameron. he's the british prime minister and about to square off with parliament in the uk phone hacking hearing. lawmakers are determined to ask him some questions about what many consider an uncomfortably close relationship between him and rupert murdoch's empire. cameron ended a trip to africa early to make this appearance

and he's expected to open with about a three to four minute statement before facing questions. >> we'll be bringing that to you live. in the meantime the prime minister of australia will be monitoring cameron's remarks closely. they say rupert murdoch's news empire in australia has a lot of questions to answer. the ruling party has called on that country's parliament to investigate murdoch's media outlets. >> it causes them to ask some questions here in our country, some questions about news limited here and obviously news limited has a responsibility to answer those questions when they are asked. >> murdoch's company dominates the australian media. it controls 70% of the newspaper readership and has vast holdings in tv, internet and other media properties. president obama says congressional leader need to start talking turkey on raising the debt ceiling. debt talks resume today with a

default deadline just two weeks away. last night the house pass ad largely symbolic cut cap and balance measure as they call it. the president said he's more encouraged by a senate plan that would reduce spending and make changes to taxes something both sides could agree on. the heat wave that has gripped most of the nation's mid-section is moving east. high humidity is pushing the heat index to well over 100 degrees in plenty of areas. the u.n. declaring a state of famine in somalia amid the worst drought in decades there. tens of thousands of somalias that have died from malnutrition and starvation. many others are fleeing trying to make their way to refugee camps. secretary of state hillary clinton has promised $20 million in humanitarian aid. it's not that easy, rebel controlled areas are restricting

food shipments. they have said they have lifted those restrictions but very difficult and heartbreaking situation. there are new allegations of hacking this morning and they do not involve rupert murdoch's newscorp operation. this one is interesting. the taliban claims it was a victim. the group accusing the u.s. of hacking in to its cell phones to send false text messages saying that its leader, mullah omar was dead. we're following the story. we go live to kabul, afghanistan. david, this one has got people wondering. what's going on? >> reporter: well, the news first broke by an afghan television station and then later in the day, cnn and other media received a message by an individual claiming to be a top taliban commander. that individual said that mullah omar had died of heart failure last week and a successor had already been named. the taliban, like you said, later came out and said they

have been the victim of a hacking and their phones and emails have been tapped. in fact this message was phoney. cnn doesn't have any confirmation of the sort. we spoke with nato official and they have no operational knowledge on the ground. so the whereabouts of mullah omar are unknown. last believed to be in pakistan, where taliban militants have launched attacks across that border against troops down in the southern region. it's those southern and eastern regions of afghanistan that have experienced some of the highest levels of attacks. and this all comes at a very interesting time. we're seeing a hand over of seven key areas across the country to afghan security force. as those hand overs have taken place we've seen an uptick in attacks and assassination attempts, and successful attempts at that. half brother of president karzai was killed last week as well as a senior advisor to him earlier this week. so, again, a critical time here in afghanistan, and allegations

of a hacking by the taliban. >> david, good to see you. thank you very much. we'll keep on top of the story with you. close to now a dozen declared gop presidential candidates now but still many voters are asking who else have you got? a lot of republicans, especially those on the christian right are saying they want texas governor rick perry to get in the race. we'll have more on that. first some live pictures to show you. david cameron, the prime minister of britain speaking now before the house of parliament. let's listen. looks like we have a little bit of an audio issue. first we'll go back. new abc -- nbc poll governor perry running third behind mitt

romney and michelle bachmann. >> he's not at the clard. jim acosta is following this for us from austin, texas. good morning. >> reporter: good morning. aides to rick perry say the governor of texas should make a decision by the end of the summer as to whether or not he'll get in the presidential race. if he does jump in, his face may take center stage. for republicans dissatisfied with the field for 2012 it could be divine intervention at a press conference texas governor rick perry confirmed what he recently told an iowa newspaper that he's feeling called by his faith and his friends to run. >> there's a lot of different ways to be called. my mother may call me for dinner. >> there was no religious overtone. >> no. i don't get confused. i'm a man of faith. >> texas is where the game success played. >> reporter: gop insiders sees a pro business governor. when perry announced new jobs

coming to the state tease high-tech community this week, he got a cameo playing quarterback in a college football video game. >> this is governor rick perry. >> reporter: it's what he'll do. he plans to lead a day of prayer. organizers call a nation in crisis. >> we need god's help. that's why i'm call on americans to pray and fast like jesus did. >> we'll get back to that story about rick perry in a moment. let's go to london. this is where if british prime minister david cameron is speaking. >> complete independence from the interested party. mr. speaker, i said last week the inquiry will proceed in two parts and i set out a draft terms of reference. we've consulted with law justice, with the opposition, with chairs of relevant select committees and the administration. i've also talked to the family of millie and the hacked off

campaign. we've made some significant amendments to the inquiry. with allegations that the problem of the relationship between the press and the police goes wider than just the net we have agreed that other relevant force will now be within the scope of the inquiry. we have agreed that the inquiry should consider not just the relationship between the press, police and politicians, but their individual conduct too. and we also made clear that the inquiry should look at not just the press but other media organizes including broadcasters and social media if there's any evidence that they have been involved in criminal activities. today i'm placing on the house the final terms of reference. lord justice and the panel will get to work immediately. he'll aim to make a report on the first part of the inquiry within 12 months. mr. speaker, there should be no doubt this public inquiry is as robust as possible. it is fully independent. and lord justice will be able to

summon witnesses under oath. mr. speaker, let me now turn to the extraordinary events we've seen over the past few days at britain's largest police for the met. on sunday paul stevenson resigned as commissioner. i want to thank him for the work he's carried out in policing over many years in london and elsewhere. on monday assistant commissioner john yates also resigned and again i want to express my gratitude for the work he has done especially in improving our response to terrorism. given the sudden departure of two such senior officers the first concern must be to assure the effective policing of our capital and confidence one that policing is maintained. i've asked the home secretary and mayor of thrown to ensure that the responsibilities of the met will continue seamlessly. the current deputy commissioner who stood in for paul stevenson who was ill and did a good job will do so again. the vital counterterrorism job

will be taken on by the deputy commissioner. the house will remember it includes general oversight of the vital investigations both into hacking and into the police operations will not be done by someone from inside the met but instead by howe who will join temporarily from her majesty's -- we're looking to speed up the process for selecting and appointing the next commissioner. mr. speaker, we cannot hope a change in personnel at the top of the met is now. the simple fact is that the whole affair raises new issues about practices about our police. the vast majority of our police officers are beyond reapproach and serve the public with distinction. but police corruption must be rooted out, the inquiry is charged with doing just that. i believe we can and must do more.

there are two problems. first, a perception that when problems arise it is still the police investigating the police. and second, a lack of transparency in terms of police contacts with the media. we are acting on both. these were precisely the two points that the home secretary addressed in her statement to the house on monday. we believe this crisis calls for us to stand back and take another broader look at the whole culture of policing in this country including the way it is led. at the moment the police system is too close. there's only one point of entry into the force. too few and too similar candidates for the top jobs. as everyone knows tom windsor is looking into police careers and i want to see radical proposals how we can open up our police force and bring in fresh leadership. the government is introsing incriminate commissioners assuring there's local individuals holding -- we need to see -- we need to see if we can extend that openness to the

operational side too. why should all police officers have to start at the same level? why shouldn't someone with a different skill set be able to union the police force in a senior role? why shouldn't someone who has bean proven success overseas be able to help us turn around a force here at home. i believe these are questions we should ask to get the greater transparency and the stronger corporate governance that we need in britain's policing. finally let me turn to the specific questions that i've been asked in recent days. first, it has been suggested that my chief of satisfy was behaving wrongly when he didn't take up then assistant commissioner's yates offer to be briefed on police investigations around phone hacking. i've said repeatedly about the police investigation that they should pursue the evidence wherever it leads and arrest exactly who they wish and that is exactly what they have done. number ten has published the full e-mail exchange between my

chief of staff and john yates and my chief of staff have behaved entirely properly. the reply to the police made clear that it would not be froept give me or my staff any privileged briefing. the reply that he sent -- the reply that he sent was cleared in advance by my permanent secretary. just imagine, mr. speaker, if they had done the opposite. if they had asked for or acquiesced in receiving privileged information even with no intention to use it there would would have been justified outrage. to risk any perception that number 10 was seeking to influence a sensitive police investigation in any way would have been completely wrong. mr. yates and sir paul backed this judgment in their evidence yesterday.

indeed as john yates said, the offer was properly and understandably rejected. the cabinet secretary and the chair of the home affairs select committee have both now backed that judgment too. next there is the question as to whether the ministerial code was broken with relation to bskyb merger. the cabinet secretary has ruled very clearly that the code was not broken, not the least because i had asked to be entirely excluded from the decision. next, next, i would like to set the record straight on another question that arose yesterday. whether the conservative party had also employed neil wallace. the conservative party chairman assured all accounts have been gone through and confirmed to me that neither neil wallace nor his company has ever been employed by or contracted by the conservative party, nor has the conservative party made payments to either of them. it has been drawn to our

attention -- it has been drawn to our attention he may have provide andy colson with some informal advice on a voluntary basis before election. to the best of my knowledge i didn't know anything about this until sunday night. but as with revealing this information we'll be entirely transparent about this issue. finally, finally, mr. speaker, there is the question whether everyone, the media, the police, politicians is taking responsibility in an appropriate manner. i want to address my own responsibilities very directly and that brings me to my decision to employ andy colson. i have said very clearly that if it turns out andy colson knew about the hacking at the "news of the world" he'll not only have lied to me but he would have lied to the police, to a select committee, to the press complaints commission and, of course, perjured himself in a

court of law. more to the point if that bombs pass he could also expect to face severe criminal charges. i have an old-fashioned view about innocent until proven guilty. but if it turns out i've been lied to, that would be a moment for a profound apology and in that event i can until i will not fall short. my responsibilities are for hiring him and for the work he did on downing street. on the work he did i'll repeat, perhaps not for the last time that his work at downing street has not been the subject of any serious complaint. of course, he left months ago. on the decision to hire him, i believe i've answered every question about this. it was my decision. hold on. it was my decision. i take responsibility. people will, of course -- >> the house must come to order and hear in silence the

remainder of the statement. the prime minister. >> people will, of course, make judgment about it. of course, i regret and i am extremely sorry about the fury it has caused with 20/20 hindsight and all that has fold i would not have offered him the job and i expect he wouldn't have taken it. but you don't make decisions in hindsight, you make them in the present. you live and you learn and believe you me i have learned. now, i look forward to answering any and all questions about these issues and following this statement i will open the debate. but the greatest responsibility i have is to clear up this mess so let me finish by saying this. there are accusations of criminal behavior by parts of the press and potentially the police where the most rapid and decisive action is required. there are issues of excessive closeness to media groups where

labor and conservative have to make a fresh start. there is the history of missed warnings, select committee reports, information commissioner reports, missed by the last government but, yes, missed by the official opposition too. what the public expects is not petty political point scoring -- what they want, what they deserve is concerted action to rise to the level of events and pledge to work together to solve this issue once and for all and it is in that spirit that i commend this statement to the house. >> can i start by thanking the prime minister, mr. speaker, for his statement. rebuilding trust in the press, police and politics is essential for our society. the most powerful institutions

in the land must show the responsibility we expect from everybody else. that is why the country wants answers from those involved in the crisis to those responsible to be held to account and so we as a country can move forward to address all the issues of the prime minister mentioned in his statement. that is why i welcome the inquiry and the announcement of the terms of reference and, indeed the panel members chosen by the prime minister for that purpose. it's why i welcome the prime minister's agreement with us about the press complaints commission, it's abolition and i want needs to be replaced. it's why i welcome the apology from rupert murdoch and the withdrawal of the bskyb bid. it's why we respect the decision of sir paul stevenson to stand down so that going forward, the leadership of the met can focus on the vital work that is necessary. so we're beginning to see answers given and responsibility

taken, and that is right. but the prime minister knows that he must do the same if the country is to move forward. the prime minister -- i have a number of questions for the prime minister. the prime minister said in his statement -- >> i said a few moments ago that the remainder of the prime minister's statement should be heard in silence. order. i say the same to members who are now heckling. think of what the public thinks of our behavior. order. and stop it without delay. >> mr. speaker, let me start with bskyb. the prime minister said in his statement something he said on a number of occasions he was excluded from the formal decision-making process. but with respect that doesn't quite answer the questions he's been asked. last friday he revealed since

taking office he had met representatives of news international or newscorp including rebekah brooks -- >> you're just joining us on "american morning". we just heard from be the uk prime minister david cameron, right now you're listening to a member of parliament, ed milliband, leader of the opposition and giving a statement before he says he's going to be posing questions to prime minister david cameron. >> he discussed the bid with cultural secretary or any of his officials discussed the bid with the officials of the culture secretary. let me turn now to andy colson. ten days ago the prime minister said about his decision to employ andy coldsson, i wasn't given any specific information that leads me to change my mind. mr. speaker, the country has a right to expect the prime minister would have made every effort to uncover any

information about mr. colson to protect himself and his office. yet the pattern of events suggest the opposite. the prime minister and those around him made every effort not hear the facts. in the last week, we have become aware of five opportunities for the prime minister or his staff to have acted on specific information that would surely have led him to change his mind about mr. colson. all were declined. his chief of staff was told in february 2010 that mr. colson had had a convicted criminal to work at the "news of the world" who was accused of making payments to police on behalf of the newspaper. even rebekah brooks said yesterday this decision was extraordinary. yet the prime minister's chief of staff apparently did nothing with the information. in may 2010 the deputy prime minister warned the prime minister about bringing mr. colson into downing street.

he did nothing. on september the 1st, 2010, the "new york times" published and investigation quoting multiple sources saying mr. colson knew about hacking which was r everyone fe at the "news of the world". we now know from yukon yates that article was enough to lead the police to reopen their inquiries and indeed it led to operation weeding. we know now it triggered the resignation of the metropolitan police contract. it toledo the offer by mr. yates for the prime minister to be briefed. now the cabinet secretary has said it's right that offer was not taken up. but the question is why? because it would be seen -- because -- because the prime minister was compromised by his relationship with mr. colson. and, therefore, could not be

told anything at all about an investigation concerning a member of his own staff. he w he was hamstrung. the prime minister shouldn't have had to rely on briefings from his chief of staff. here was a major investigation. published by a leading global newspaper about the prime minister's director of communication. mr. speaker, the met fired mr. wallace, even though he wasn't mentioned in the article because of the associations he had with mr. colson and the publication of the article. what did the prime minister do? he did nothing. mr. speaker, mr. speaker, given the "new york times" evidence, the public will rightly have expected very loud alarm bells to ring in the prime minister's mind, yet apparently he did nothing. then in october the prime minister's chief of staff was approached again by the guardian

about the serious evidence they had about mr. colson's behavior. once more nothing was done. mr. speaker, this can't be put down to gross incompetence. it was a deliberate attempt to hide from the fact about mr. colson. >> order! order. members shouting out shouldn't be doing so. they must calm themselves, keep on an even keel. it's good for their health and for the house. mr. milliband. >> the prime minister wassing caught in loyalty. what was expected of him and his staff and his personal allegiance to mr. colson. he made the wrong choice. he chose to stick with mr. colson. so, mr. speaker, sir, my second question is, can he now

explain -- can he now explain why he failed to act on clear information on why those around him built a wall of silence between the facts and the prime minister? mr. speaker, the prime minister's conflict of interest had real effects. the metropolitan police commissioner resigned on sunday. the prime minister didn't talk about the reasons for his resignation, but the house must talk about it. sir paul stevenson was trapped. trapped between a home secretary angry at not being told about the hiring of mr. colson's deputy neil wallace, and belief in his own words that doing so would have compromised the prime minister. compromised him because of mr. colson. why did sir paul think that? because his own deputy, john yates had been told by the prime minister's chief of staff that the prime minister should be told nothing. so, mr. speaker, this

catastrophic error of judgment, hiring andy colson, hanging on to him too long, directly contributed to the position sir paul found himself in and his decision to resign. so, my third question, mr. speaker, is does the prime minister accept that his conflict of interest for the metropolitan police commissioner in an impossible position? so three questions are about bskyb, the warning about mr. colson that were consistently ignored, and about the met commissioner. these and many other questions will have to be answered by the prime minister over the coming months. there's one other question which matters now. he says -- he says that in hindsight, he says that in hindsight he made a mistake by hiring mr. colson. he says that if mr. colson lied to him he would apologize. mr. speaker, that isn't good

enough. because people -- it's not about hindsight, mr. speaker. it's not about whether mr. colson lied to him. it's about all the information and warnings that the prime minister ignored. he was warned and he preferred no ignore the warnings. so that the country can have the leadership we need. why doesn't he do more? why doesn't he do more than -- >> you're watching "american morning", special coverage of the debate going on, not debate but questions being asked of the british prime minister, david cameron. we're looking at parliament. david cameron standing up now to respond to allegations by the leader of the opposition. ed milliband. >> rising to the level of events. most of that was just a tissue of totally -- i'm trying to answer every point. first of all let me thank him for what he said about recalling

parliament, that's right. let me thank him about what he said about lord levinson. let me thank him what he said about the panel. i have to say on most of the other questions i feel he wrote the questions before he heard my statement today. he asks about the issue of bskyb. the cabinet secretary has said there was no breach of the ministerial code. you heard, you heard the evidence of rebecca wade yesterday saying there was not one single inappropriate conversation when it comes to setting out meeting with newscorp operation i've set out every single meeting since last election. so the gentleman published a list this morning but it does not go back to the last election. indeed when will we ethe transparency from tony blair and

gordon brown. second, second, second issue -- the second issue, his questions about andy colson. >> order. house is getting over excited again. i'm glad it's calmed down. we want to listen to what the prime minister has to say. >> he asked questions about andy colson. let me remind him of this point. no one has raised question about his conduct at number 10 downing street. let's make this point. there's only today one party leader with news international executive with a cloud in his head sitting in his office. third question, the questions he raises about my chief of staff. is he honestly saying when it comes to this issue of the proposed meeting with john yates is the leader of the opposition suggesting that he knows better than the chairman of the home

affairs select committee, than the saab net secretary, than john yates, than paul stevenson, than all these people, is he saying all those people are wrong and he's right. i think that shows a staggering lack of judgment. let me just answer the question about sir paul's resign acceleration. i know it is inconvenient for the honorable gentleman but sir paul stevenson set out the reasons for his resigniation yesterday in detailed evidence and explained how the situation was so different to the situation in number 10 downing street. most of the questions he asked, i had already answered. the role of the chief of staff answered, the parallels of the metropolitan police answered. on closeness to media groups let's be clear what we heard yesterday. rupert murdoch said, i quote, the politician i was closest to

was gordon brown. let us just remember who was the advisor when gordon brown was the chancellor. >> we want to hear the answers given by their own prime minister. the prime minister. >> and leapt us just remember, mr. speaker, who was the advisor to gordon brown when he was the chance tlorks right honorable gentleman. on the issue of the action we have taken, let us remember during the last parliament reports of the information commissioner ignored, reports of the select committee ignored. the failure of the police investigation ignored. we now know exactly which party was, if you like, the slumber party and it is the party opposite. everyone. frankly, mr. speak, everyone can see exactly what he's doing, an attempt to play this for narrow party advantage. the problem has been taking place over many years. the problem is for both our main parties and the problem is one

that the public expects us to stop playing with but to rise to the occasion and deal with it for the good of the country. >> order. mr. david davis. >> under the previous labor government, when my right old friend the member was rested by the metropolitan police the prime minister and home secretary were not notified of the details of that investigation. at that time the labor front insisted the matter of ministerial propri temp y was not told. >> my friend makes a very good point. i think when you read the exchange of emails and you see what was said you see that it was cleared in advance buyer my heywood, absolutely right we don't live in a country thank

god where the prime minister orders who should be arrested and who shouldn't. >> mr. alan johnson. >> the secretary made a statement on monday over 1,000 words. two words neil and wallace was not mentioned. she like me was unaware of his appointment. we weren't in a situation where neil wallace's best buddy was working for us. the prime minister was. did he know that neil wallace was giving advice to the metropolitan police. >> no, i didn't know that. as i said in relation to the work he did for andy colson i was unaware of that. one of the issues is the transparency and information that there was about neil wallace and the metropolitan police. there was no hiding the fact

that we had employed andy colson. >> mr. simon hughes. >> i join the prime minister in paying tribute to sir paul stevenson and thank him for the announcements he's made. but will he now say he accepts that all governments from this one back for over 20 years have been far too close to the media giants in this country, that that has to end which means no more back door visits to number 10, and that we should be able to have not just political party papers but cabinet papers and the recommendations of the information commissioner and others should be implemented to increase criminal penalties for illegality immediately. >> i acthe point about transparency. what i set out not just meetings that are business meetings, official meetings, but private meetings as well and when

relations of the meeting i held with our measure the fact is not whether he came through the back or front for but was it declared in the proper way and yes it was. in the old days the only way you found out if someone met with rupert murdoch it was through diaries. it goes back to election. includes private and official meetings. meetings at checkers or number 10 downing street. we need to go further in this regard. this should be the new standard. i say to the gentleman who has published the information up to when he became leader, why can't we see right back to the general election. >> mr. jack straw. >> mr. speaker, when the prime minister read of the extensive investigation in the "new york times" on the 1st of september of last year, what was his reaction to that and what did he do? >> the question i ask myself all the way through is that new information that andy colson

knew about hacking at "news of the world". i couldn't be clearer about this. it turns out he knew about that hacking he would have lied to a select committee, lied to the police, he would have lied to a court of law and he would have lied to me. now i made the decision to employ him in good faith because of the assurances he gave me. there was no information in that article that would lead me to change my mind about those assurances, but if it turns out -- as i said, i couldn't be clearer. if it turns out that he knew -- if it turns out that he knew about the hacking, then that would be a matter of huge regret, a matter of great apology, a disgrace that he only worked in government but something subject to criminal prosecutions. >> mr. john winter hittingdale. >> we'll put it back in a corner for a second. this is a special session of parliament where david cameron the prime minister is taking

questions from members of his own party but mostly from members of the opposition. a lot of this is revolving around this name of andy colson. >> this is person who emerged as a controversial figure, andy colson at the heart of this hacking scandal. he worked for david cameron. he was his media communications chief for a time. >> what was important is what he did before that. >> before that he was the editor of the "news of the world" from 2003 to 2007. in 2007 is the year when some of these hacking arrests, jail time came to light. he insisted at the time that it was one rogue reporter. he was questioned in 2009 and 2010 before members of parliament testified he believed it was the work of a rogue reporter and there were other questions about him not knowing. >> now the issue is how far did it go. the question you bring up a lot is trying to understand this relationship between the media and politicians and the police

and it's a very sort of convoluted relationship. the prime minister is being asked a lot of questions. let's bring in somebody who knows a lot about this. the author of the book "inside rupert's brain." he's a friend of ours. paul, just connect the tissue for us for viewers. we heard rupert murdoch's testimony. we saw rebekah brooks resign and then get arrested. how does this all connect? >> what's really amazing it just shows how interconnected british politics and the media and to an extent that we have really expected what was really astonish is murdoch in his testimony claiming that he was somewhat ignorant of what was going on at the tabloids, all the responsibility of rebekah brooks, maybe the dow jones ceo who was at news international before taking over dow jones. it doesn't ring true with people in the media world. we know murdoch loves the newspaper business and famous for being in close contact with

editors at the tabloid about stories. >> so there's a lot of questions yesterday put to rupert murdoch as well as his son whether they intentionally didn't know, quote unquote turning a blind eye. if this was the united states of america we can't fathom any president would be sitting there answering questions from the speaker of the house or others about his involvement in media. it's a totally different relationship and david cameron is trying to defend himself that he did not have a kozzy relationship and andy coldson who was his immediate why chief of staff didn't do anything inappropriate at 10 downing street. 000 threatened would a politician like david cameron be over these ties. >> a very troubling development the fact that you have the sitting prime minister being alleged to have someone close to him in contact with the murdochs. not just in contact but a newscorp employee of such a high

level. this is something that it's understandable why there's this major uproar in the uk about this and whether or not this is something that cameron can weather remains to be seen. clearly this scandal is not going away any time soon despite the murdochs hearing yesterday protesting they didn't know what was going on. >> as much as we look at differences between here and the uk, it's not uncommon for ex-journalists to become part of the press staff of politicians. what's the, if there were a smoking gun what would it be? we know this guy worked for a newscorp operation and he was an editor and then worked for the president. is it folly that he had two jobs that might have been in conflict or is there something to this? >> i don't think it's folly. the key question is whether there is a smoke gun, if you will, or a paper trail that directly connects rupert and

james murdoch to this scandal. that's what is needed to bring them down or force more pressure on them to step aside at newscorp. barring that, the worst they will be accused of turning a blind eye. maybe not directly encouraging this behavior but overlooking it and knowing it was going on and hoping it just didn't touch them directly. >> the other question is about the judgment of prime minister cameron. there are allegations there were warnings don't hire colson before he did and he chose to do that. that seemed to be what the labor party the opposition party were hammering him about this morning. but that aside, the other question has to do with the way that this entire cozy operation seems to take place in britain. david cameron was pledging some major changes in the way the media operates. are we looking at changes in journalism in general because of this "news of the world" and newscorp scandal? >> it's very possible. the mere fact that the british government was able to exert enough pressure on newscorp,

newscorp pulled out of its deal to buy bskyb is pretty telling. that's something murdoch coveted. it wouldn't shock me if there would be new regulations put. its committees will look more closely at these cozy relationships. this isn't new with cameron. as he spoke he accused brown and blair. rupert murdoch his close ties the british government go back to margaret thatcher. this is by no means a new development. >> not just with the conservative government. we're speaking about andy colson. you'll hear his name as we continue to cover this. he's central to this uk phone hacking scandal opinion he resigned as editor of "news of the world" in january of 2007 after a reporter and private detective were jailed for hacking the voice mail of the royal houlsd staff. >> then he denied being aware of any wrongdoing at the paper. then hired to become the conservative party's director of communication. that was in the summ emer of 20.

in 2009 he told the committee he believed the phone tapping was the work of a rogue reporter. talked about the fact that there were many who said this practice was widespread at "news of the world" and police interviewed colson over allegations he encouraged it. he's not been charged in this situation. still the possibility there will be more arrests. >> we'll continue northern this. thanks very much. we're following this very closely. we'll keep on dropping in to see what's going on in parliament. we're monitoring several other stories out there today. still to come this morning the stifling heat wave that some of you have already left the house are feeling. some broiling going on in the midwest. spreading east. jacqui jeras is in the "weather center" to tell us where it is headed. the long arm. law catching up with a group of

suspected hackers. details on who they are and what they are accused of. >> a budget fight holding students back. school may not start because of $55 million that the district wants the city to pay. we'll have more on how that could possibly happen. it's 17 minutes the hour. [ female announcer ] the healing power of touch can be even more powerful,

with precise pain relieving cream. it blocks pain signals fast for relief precisely where you need it most. precise. only from the makers of tylenol.

morning where it's pretty nice right now, many degrees. sunny and going up to 90. >> ouch. >> take a jump in the lake. >> that midwest heat is moving east. let's go to jacqui jeras. what's it looking like? >> brutal, actually. chicago, you just showed, by the way, they had thunderstorms that rumbled on through and while you may think thunderstorms will provide heat relief. it's temporary. that moisture has been added into the atmosphere so the heat index will start to soar. the heat index in chicago right now 80 degrees. it's 88. that's the temperature your body feels in minneapolis. when you wake up to that wet bath, that early in the day, it's just extremely uncomfortable and down right dangerous. the best thing i can tell you, today is the last day of the heat across the upper midwest.

still going to hold across the southern plain states but most eastward. we'll feel heat indisbetween 100 and 120 degrees. many suburbs of the twin cities yesterday got up to 100 to 124 degrees for a heat index. that's down right dangerous. the shaet on the move. it's heading toward the east. these advisories you see in effect, these are excessive heat watches. get ready because this stuff is on the way. we're talking about tomorrow lasting into the early part of the weekend for the northeast. it will hold on to the mid-atlantic. places like baltimore and washington, d.c. expected into the early part of the weekend. thunderstorms across parts of the southeast might be severe in the upper midwest but overall just hot and muggy and dry out there, guys. >> rough summer. rough july. we'll check in with you later. expect to be a rough winter too, right? >> it's weather. >> we had spring too for a about a week. >> have to give some thought to

changing my wardrobe. >> still to come this morning the world's biggest tech company but growing like a start up. we'll tell you about apple's rock star earnings performance. our question of the day. we want know what your favorite fast food guilty pleasure is. we're getting fantastic emails, tweets, posting on our blog and facebook. keep them coming. we're getting hungry. i count on. here's what i'm not... a pushover. right now, some in washington want to make a deal cutting the social security and medicare benefits we worked for. with billions in waste and loopholes, how could they look at us? maybe we seem like an easy target... until you realize... there are 50 million of us. [ female announcer ] tell the politicians: cut waste and loopholes, not our benefits.

24 minutes after the hour. minding your business now. breaking news, american airlines just announced it's ordering $37 billion worth of planes, the biggest deal ever for a plane order. it will be split between boeing and airbus. judge this just in. the number of mortgage applications increased last week. mortgage rates are back down to their lowest levels the year because of turmoil in financial markets. the dow jumped 200 points yesterday making at any time best day the year for blue chip stocks. markets got a boost on good news. strong housing data and corporate earnings reports pushed stocks higher. apple breaking records. the company announced profits

doubled in the last quarter. the stock surged over $400 a share in after hours trading. 20 million iphones were sold last quarter. a new record. more big earnings on tap today. altria which owns philip morris, blackrock and united technologies report earnings in the next few hours. american express, e-bay intel reports earnings after the "closing bell". investors liked newscorp operation's ceo rupert murdoch's testimony in front of uk parliament members because the company's shares surged 5%. the murdoch family still lost about $750 million in company stock holdings. for the very latest news about your money check out cnnmoney.com. "american morning" back after this break. it's new! ahhh-ahh-ahh!

it's nice 'n easy colorblend foam! permanent color with tones and highlights. now in a delightful foam. just three shakes, foam it, love it! it's foamtastic! new nice 'n easy colorblend foam. your right color. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation,

because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto insurance quote. u.s.a.a. we know what it means to serve. a network of possibilities. in here, the planned combination of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more americans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites... for greater access to all the things you want, whenever you want them. it's the at&t network... and what's possible in here is almost impossible to say.

it's the at&t network... the eagle flies at dawn. the monkey eats custard. price-line ne-go-ti-a-tor. so, you've been double crossed by other travel sites and now you want to try the real deal. yes, is it true that name your own price... ...got even easier? affirmative. we'll show you other people's winning hotel bids. so i'll know how much to bid... ...and save up to 60% i'm in i know the lady in leather travels on three wheels. wait, is that code? that's my secret weapon... ...naomi pryce see winning hotel bids now at priceline. okay.

it is the 29 minutes after the hour. time for this morning's top stories. there's many of them. brir prime minister david cameron appearing before plant in the phone hacking hearing. he's up every minute or so. these live pictures from inside the house of commons. cameron says he'll apologize for hiring former "news of the world" editor andy colson if it's proved to him that colson lied to him. listen to some of the back and forth between cameron and ed milliband. >> we have a well led police investigation which will examine criminal behavior by the media and corruption in the police. we've set up a wide ranging and independent judicial inquiry under lord justice to establish what went wrong, why, and what we need to do to ensure it never happens again. >> he was warned and he preferred to ignore the warning.

so that the country can have the leadership we need. why done he do more -- why doesn't he do more than give a half apology and provide the full apology now for hiring mr. colson. >> we will continue to northern that. meantime here in the u.s. urgent talks on how to slash spending. congressional leaders are meeting today and talks come a day after the house pass ad cut, cap and balance plan largely a symbolic measure. it moves on to the senate but not expected to pass the senate. the taliban accuses the u.s. of hacking in to its cell phones and sending out fake text messages announcing the death of mullah omar it's leader. taliban officials insist the leader is alive and well. also potential break in a major hacking investigation that's under way here in the u.s. the fbi arresting 16 people for alleged cyber attacks.

>> most of thought to be connected to the group anonymous which attacked pay pal and other credit card websites. susan candiotti is following this story. these are challenging stories when you're tracking a group called anonymous. >> exactly. one could argue that they are not so anonymous any more. the feds have had their eyes on them for a long time. so yesterday they spread out, the fbi did, nationwide. nine states including the district of columbia as well, even europe five arrests. 16 people picked up, all allegedly connected to this group anonymous. they used names like toxic and reaper. going online, getting others involved to create a denial of service where you overwhelm a computer system for a firm, a company, overwhelm to it the degree that they can't w-incoming mail that they can't do anything, virtually they are shut down. so this group, anonymous, is

known for not only as you said attacks on pay pal and visa but they were also taking revenge for people mistreating they thought julian assange after that big document dump of all the classified documents of wikileaks last december. that's when they allegedly went to town going after all these other computer companies as well. the fbi feels they made a big dent in this group. hopefully taking them out of service but we know how cyber security, how important it is and how many break ins they have been. we hear about these almost on a daily basis. >> there's 16 arrests. it's unclear whether a hacking organization is more effective with a lot more people. the most successful ones are done with a small group of people. >> it's hard to understand how this put as dent in it. it seems like it's very difficult. >> they know how to get supporters and oftentimes advertise what they do. look they brag about it. that's what they did.

look you can go to this website and see what we did. and carry on from there. >> one of their latest brags is that they hacked into rebekah brooks, the former ceo who just resigned from "news of the world" and said they would release those. >> that was two days ago they made that claim. >> there's a lot of claims. no evidence of it yet. that's possible. but, again, these people are so spread out there's a lot of factors, a lot of fiction. >> this loose affiliation of hackers -- >> not asking you in particular. >> i'm not a member, no. >> is there much of a structure that the fbi knows of. they found 16 people. >> that's one of those questions that a lot of people would like to know the answer to. they are trying to sort through that. bottom line is who knows at this point. >> susan candiotti for us on this story. we want to dig deeper on this. joining us more on these hacking

groups is david aitel. president and ceo of the security group immunity. he has experience working as a computer scientist. let's talk about the arrest of 14 people arrested and other raids likely to be conducted. how big of a dent does this put in this hacking scandal or just the whole hacking incidents that we've seen of late? >> that remains to be seen. obviously these are probably people that may or hey not have been up in the hierarchy. even if there's a hierarchy. some are as young as 16. you may not think of them as super hackers. there's some skilled individuals in this crew and some may be behind bars. >> it is interesting, the fbi seems to be needing to play a catch up game. there's clearly not enough people in our government as there are hackers as they are trying to crack down. the interesting question is what

is the motivation behind anonymous. they seem to be taking a political stand with the pay pal situation, anonymous and this other group, they seem to be wanting to prove a point, anger over julian assange's arrest. >> well, i think as you may find with many 16-year-olds there's a lot of rationization -- rationalization going on. the motivations behind them are shared by a large grouch people and even if it's slightly above creating mischief, you know the fact that there's some of them, they can make such a big impact. sony is claiming they did $150 million worth of damage. they took down senate.gov servers. there's been quite a few things they've done including most recently the sun hack as you

mentioned. >> the sun corporation owned by rupert murdoch, posting a false story that rupert murdoch was found dead. >> you live by the sword, you die by the sword. it's odd to see anything from the british parliament talking about it to the secretary of state talking about to it a 16-year-old getting arrested in the mist of london. interesting time. >> it is interesting. in some cases it makes consumers arguably question the safety of their information. the sony, via saks mastercard, pay pal situation. when you're looking at things like at & t, also the cia public website. it seems these hackers are proving a point that no one is safe. is that true? >> that's true, no one is safe. the fbi is pointing out the hackers are not safe either. you go back and forth for a while. the reality is no one knows who will end on the upside.

your offering job, your average consumer is at risk of all your information being lost. >> is there anything you can do to protect yourself if you're in this global digital world? you have your credit card, you know, numbers out there. you do are you on line banking. you pay for things online. how do you protect yourself or can you? >> i think in the modern world the individual has to live as if they have no secrets. and that's unfortunately not the case for most people including i'm sure myself. the corporations that we see we always advise them to spend as much on security as they have on user interface design and graphics and for most of them that's not truetter as sony is learning to their discomfort. >> thank you for joining us. >> thank you. >> coming up next on "american morning", 22,000 workers have been without a paycheck in minnesota because of that government shutdown may soon be heading back to work. we'll have details. $55 million, pay up or we're

not having school. first day of school is on hold in one big city as a fight between a school district and the city continues. we got live pictures, the conversation continues in the british house of commons with members of parliament grilling prime minister david cameron about how much he knew about this man named andy colson who he hired as communications chief. andy colson used to be the editor of the "news of the world". the discussion continues. we'll bring you up to speed when we come back. information first. for broccoli, say one. for toys, say two. toys ! the system can't process your response at this time. what ? please call back between 8 and 5 central standard time. he's in control. goodbye. even kids know it's wrong to give someone the run around. at ally bank you never have to deal with an endless automated system. you can talk to a real person 24/7. it's just the right thing to do.

minnesota's government poised to re-open for business. lawmakers worked through the night, finally agreed on a budget plan. the governor is expected to sign the deal today putting an to end the shutdown which began on july 1st. first of nine wisconsin lawmakers that fled the state, have survived a recall election. david hanson defeated his republican challenger. the other eight lawmakers face recalls in the next month and that could alter the balance of power. >> very interesting story going on in memphis, tennessee. another budget fight.

kids are cut in the middle. the memphis school board voted to delay the start of the school year until the district gets $55 million that it says the city owes it. the only board member who voted no said you can't ask the city for money it doesn't have. here's both sides. >> someone has to assume responsibility for the education of the children in the city of memphis, and i don't think the city council can be exempt from that responsibility. >> i'm all in support of us having assurances and money in the bank, but i think that 55 was just an unreasonable amount to expect at this particular time. >> hard to sort of keep track of what's going on. in most places you don't see it that way where there's a fight over to school board and the city. the city saying we don't have $55 million to give you. >> what is the school district

supposed to do? what happens to these kids? how do paychecks get covered? >> they said they had to lay off some people already. wedding photographers can be pricey, so why not threat town take care of. this 50-year-old woman is the wedding picture she was known for. she was arrested on saturday. it was her wedding day. she posed in her wedding dress. she was arrested on two identity theft charges. she's a runaway bride. she paid her bond and didn't show up. >> if i saw their mugshot that's unique. weddings and babies they look the same. >> you think all babies look the same? >> yeah. >> they look like you for a little while. >> kind of ageless. are some fast food restaurants misinforming customers about the

calories they are about to consume. don't miss the special report on this. we're very interested in what she has to say. >> viewers are not misinformed. you know what is your guilty pleasure. we ask what's your favorite fast food guilty pleasure. let us know. >> some great responses. >> i need to move to certain places. i haven't had fried okra in years. apparently it's a southern thing.

45 minutes fast hour. here's a look at your headlines. david cameron facing tough accusation in the uk phone hacking scandal. the prime minister says he will

apologize for hiring former "news of the world" executive andy colson if it's proven he lied to him. a 26-year-old man has been arrested for hitting rupert murdoch with a shaving cream pie while the newscorp chairman testified at yesterday's parliamentariary hearing. the hacker is identified as jonathan bowles. congressional leaders are expected to meet today for a new round of debt talks. meeting comes a day after the house pass ad bill that would put strict caps on future government spending and make it tougher to raise taxes. that bill is expected to die in the senate. taliban officials say reports of mullah omar's death are greatly exaggerated. they accuse the u.s. of hacking into its cell phones and sending out fake text messages announcing their leader is did. fbi arresting 16 alleged hackers part of the group called anonymous.

literally the biggest thing in basketball, nba basketball st star yao ming announcing his retirement. he missed 250 games due to injuries. "american morning" is back in just 60 seconds. [ male announcer ] germs in your mouth build up

and form a layer called biofilm so strong it survives brushing. thankfully, there's listerine® antiseptic. its triple-action formula penetrates biofilm, kills germs and protects your mouth for hours. fight biofilm with listerine®.

it's not a vest it's a gift cardle. america is getting bigger. chain restaurant knows our taste buds crave high fat, high sodium, high calorie meals and can't to cater to it. >> some are ridiculous. center for science and the public interest has come out with their annual extreme eating award. this highlights some of the unhealthiest dishes that restaurants have. not picking on anyone in particular but let's start with applebees. they have what's called the provolone stuffed meat balls. 15 to 20 calories, 43 grams of saturated fat, two days worth of sodium at 3700 milligrams. that's in one meal.

>> denny's. the fried cheese melt. doesn't look all that harmful. basically it's four deep fried mozzarella cheese sticks for 1260 and 21 grams of saturated fat. 30,000 milligrams worth of sodi sodium. >> you can't blame the food. we are drinking calories. this is a shake from coldstone creamery. it has 2,010 calories. a full day's worth for guys. 68 grams of saturated fat which is three days' worth of fat as well. >> in people your size can't be doing that. >> unless we are training for a triathlon. >> i like a good steak. morton's. take a look at the porterhouse steak with mashed potatoes and creamed spinach.

2,570 calories and 85 grams of saturated. that is four days' worth of saturated fat. 2,980 milmilligrams of sodium. >> my stomach is grumbling. i know that is bad. >> keep your thoughts coming in. change your name if you don't want to tell your wife or husband what you like. fat-filled calorie dishes like that on the menu. you hope the calorie counts that some restaurants in some states provide would be correct but a new study finds the calorie counts themselves. the ones that are posted are often wrong. >> senior medical correspondent liz death cohen joins us live from the cnn center in atlanta. you can't always believe what you read. that old adage seems to apply here. >> that's true. i'm about to go to a restaurant i know has nutritional information on their website. i go on the website to find out how many calories are in the dish i want to order. turns out those numbers may not be so accurate. lori and urban is on a secret mission and it has to do with

what is in this bag. she's a nutrition researcher and restaurants don't know she's checking up on them! back in her lab, urban grinds up the food, turns it into a powder, and analyzes it to find out how many calories there are. >> the sample we are going to take needs to be a representative sample of the entire dish. >> reporter: she he found 1 in 5 restaurant dishes has at least a hundred calories more than what the restaurant says it does. that means when you look on the restaurant's website, you can't always believe what you read. >> one food had more than a thousand calories more than it was supposed to. more than a thousand more! it was just shocking. >> reporter: urban and her colleague susan roberts wrote up their findings in this week's journal of the american medical association. >> it shouldn't happen. >> reporter: several restaurants had dishes with calorie count in the lab was different than on the restaurant's website including chip dolte where a

burrito bowl had more than 249 more calories and the chicken soup from olive garden 246 more calories and chicken dish from boston market 215 more calories. the national restaurant association points out on average the calorie count given by the restaurants are accurate. chipolte and olive garden said their dishes are hand prepared and cooked from scratch which means calories may vary. boston market questioned the accuracy of the research. roberts says the extra cal liz add up. >> if you have a hundred calories more than you think every day, just a hundred calories that is 10 to 15 pound of extra weight you gain over the course of a year. >> reporter: 10 to 15 pounds and unless you have a lab, you'd never know why. the advice here from the researchers that i talked to, three words -- on the side. when you're ordering these dishes, ask for things like cheese or dressing on the side and that way can you control the calories. >> good advice.

>> not that i would! my wife does that all the time. i still eat all of it! i get her side and mine! listen. there are places around the u.s. where it's required for these calorie counts. a lot of people might be watching us saying it doesn't happen in my states. oregon, vermont, connecticut and california and new york city and phil some counties in new york and other places. i know susan was saying some places in florida. >> right you can go online anywhere and find the calorie counts posted but you have dig a little more. >> i do. i do. i do. >> i know you two do! >> just to figure out some stuff. i have a daughter with food allergies so i have to look at every single possible thing. why are there such huge discrepancies with what they are posting and what this research group analyzed in terms of how many calories, salt, fat, content in these foods? >> the restaurant sort of explained it correctly. these are all handmade. take a look at a salad from outback steakhouse. a side salad and had 659 more

calories than it was supposed to according to the information on the website. the reason why is probably that the person who made it, you know, probably threw on some extra bakin' bits and blue cheese. i don't know if you can see it there. we got this takeout. maybe if you're eating there they shake on more blue cheese. it takes another handful of bacon crumbs and another shake of the dressing and you have changed the calorie content. >> how many calories did that have? >> 659. >> i suspect you don't get that out of a single full meal that you eat? oh, me? >> yeah. >> probably not because it would put me to sleep. that's a lot of food. >> you're right. elizabeth cohen, tell people they can head to cnn.com/health to find out more about. interesting stuff. thanks. >> thanks. >> it does make me make choices. if i see that is 600 calories and i see 400 i will probably

take the 400. our question of the day. what is your fast food guilty pleasure? >> we got a lot of good ones. >> lori says i try to stay away from fast food but when i splurge it has to be chick-fil-a. definitely one of my favorites. >> candy writing double quarter pounder, large fries and six-piece nuggets and sweet tea from mcdonald's, don't judge me! >> you get a half-pounder there. >> courtney who is morning anchor in central pennsylvania says nothing beats in-in-out burger. extra crispy fries and need to make their way to the east coast. first stop when i land in california. get the gps and find the first in-in-out burger. >> we have multiple slices of good pizza. e-mail us, give us a tweet, tell

us on facebook and we will read through some of them later in the show. we got sidetracked because of that british parliament but nothing will keep us away from food. "american morning" back after the break. with dha and essential nutrients also found in mother's milk. purina puppy chow. ♪ let me make you smile ♪ let me do a few tricks ♪ some old and then some new tricks ♪ ♪ i'm very versatile ♪ so let me entertain you ♪ and we'll have a real good time ♪ [ male announcer ] with beats audio and flash, you can experience richer music and download movies straight to the new hp touchpad with webos.

and download movies straight to the new hp touchpad you know, the ones find a who do a super job? superpages.com®. for local maps, reviews and videos & it's the only local search site with the superguarantee®. so next time, let the good guys save the day. get the superguarantee®, only at superpages®.

in the book, on your phone or at superpages.com®. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare.

david cameron under fire at the uk hacking hearings. i'm kiran chetry. british lawmakers demanding answers from their prime minister about his ties to rupert murdoch's media empire. we are live in london where the fireworks have been flying all morning. >> i'm ali velshi. two proposals to get our nation's debt under control. republicans praising one plan and president obama is praising the other. are we any close to averting a debt disaster in details on this "american morning." ♪ hello again. it is wednesday, july 20th. christine is off today. that means kiran and i have a lot of news to split up between us this morning. >> we have been talking a lot about the prime minister of britain in the hot seat this morning. we are showing you a live surreal unfolding of this back and forth between david cameron

and other members to parliament. he had to cut short a trip to africa to appear before lawmakers who want to know his ties to rupert murdoch's media empire. >> he has to get out of the seat a minute and a half to answer questions as is typical in parliament. after 15 months in office this eavesdropping and corruption allegations against news corporation is rocking his administration and it has to do with a man he hired to be his communications director. atika shubert is live for us in london. >> reporter: cameron seems to be laying out the argument and taken the clearest steps to distance himself from andy koulskouls coulson who was arrested as par of the investigation into the phone hacking. clearly cameron is trying to draw a line under the scandal saying and inquiry is i understand way and in 12 months

you'll have a report. the opposition leader isn't letting him get away with it. here is what they both said. >> we now have a well-led police investigation which would examine criminal behavior by the media and corruption in the police. we have set up a wide ranging and independent judicial inquiry under law justice to establish what went wrong, why, and what we need to do to ensure it never happens again. >> he was warned and he preferred to ignore the warnings. so that the country can have the leadership we need. why -- why doesn't he do more? and give a full jooi for hiriapy

for hiring coulson. >> he has said labor has their own media spin doctor. at one point, cameron said everybody has done it. we all have to admit it. if we are going to look at his record why not look all the way back to labour under tony player. >> he said that rupert murdoch said at the hearing yesterday that he was actually closest when it came to prime ministers to gordon brown so that met with a lot of cheers and jeers from parliament as well. very fascinating exercise in the way that british government works. >> yeah. thanks, atika. by the way, what is happening today is a lot more interesting to watch than what happened yesterday which was rupert murdoch, his son and rebekah brooks testifying before a parliamentary committee. >> you thought today's was more exciting? >> i think that yelling and screaming. >> you had an invader come in there. an attempted throwing a pie in rupert murdoch's face.

>> two hours after -- there is the pie attack. it's hard to see but you'll see it again on the left side of your screen wendy dang who is in pink gets up opinion there is the guy off to the side of the jin. she gets up and that is rupert murdoch's wife. >> 42-year-old wife and jumps over another woman to hit that guy. he ended up being a 26-year-old man. had he a shaving cream pie. he tried to hit rupert murdoch in the face. he kind of got his shoulder. this happened yet and it didn't take long for his wife to leap to the defense and police get involved. >> she maked him in the head. >> she got her licks in before the police took him. >> police took him in in handcuffs and charged him with a public order offense. before that attack, it is a far better thing i do now than i have ever done before he said. he says he has been humbled. rupert murdoch is not sheing a shred of blame for the phone and

hacking corruption scandal rocking his media empire. this was the highlight yesterday if you missed it. >> murmur dock, did you accept ultimately you are responsible for the whole fiasco? >> no. >> you are not responsible? who is responsible? >> the people that i trusted to run it and then maybe the people they trusted. >> murdoch's heir apparent his son james who is sitting next to him, he also testified. the key moment came when it was suggested that the younger murdoch turned his back when victims were hacked. >> are you familiar with the term willful blindness? >> mr. sanders, would you care to elaborate? >> it is a term that came up in the enron scandal, willful blindness is a legal term. it states that if there is knowledge that you could have had and should have had, but chose not to have, you are still

responsible. >> mr. sanders, do you have a question? respectfully, i don't know what you'd like moo tow say. >> i'm asking whether you were aware. >> i am not aware of that particular phrase. >> he is talking about willful blindness in the enron scandal. that led to these regulations that said in america a ceo, there are some things you should know, you're responsible for it if it happens. you can't say i didn't know because of somebody else. it doesn't really apply in the parliamentary testimony but that is what that member of parliament was talking about. >> also interesting because david cameron talked about promising very vigorous changes in media regulation in the uk in the wake of this so we will see what happens there. in the meantime, rebeck ka brooks also appeared before british lawmakers yesterday. she resigned earlier this month. she was arrested over the weekend but not charged. brooks denies responsibility for the aled hacking at the newspaper that she once ran. she insisted that she was shocked and disgusted when she heard reports about the murdered

schoolgirl's phone being tapped. >> of course, i have regrets. i mean the idea that milli dowler as phone was even worse authored by someone at the "news of the world" is horrid to me as it is to everyone in this room and an ultimate regret that the speed in which we have found out and tried to find out the bottom of this investigation has been too slow. >> last night, murdoch sent an e-mail to his employees vowing that news corp. will emerge a stronger company. >> by the way, just today, their stock price after falling for days actually saw 6% bumps. so some investors are liking what they saw. new developments in the search for a deal to keep the gopt government from defaulting on its obligations. president obama is giving his bless to go a new bipartisan senate plan put together by the so-called group of six senators that includes a mix of spending cuts and changes to the tax

code. in the meantime, the republican-led house passing its own cut, cap, and balance plan that cuts federal spending and then caps it and they calls for a constitutional amendment requiring washington to balance its budget every year. it has pretty much no chance of passing the senate and even if it did, president obama has said he would veto it. new this morning. the fbi carrying out raids in several states and arresting at least 16 suspected hackers. the majority of those are thought to be part of the group anonymous. that group is the one that claimed responsibility for attacking paypal, the cia, as well as several credit card web sites. >> you got to pay attention to this particular piece of video. it's really good but you got to pay attention to it because it involves armed robbers and a chihuahua. a good thing these guys were wearing masks when they did it because this is pretty embarrassing. check this out. l.a. county police. the guys coming in to rob the house and you see the chihuahua. one has a rifle. they are chased down the street by a chihuahua.

they got away with some cash but they didn't stick around for the rest. >> good for the chihuahua. all ten pounds of him. he was not going to let anybody get away with it. >> as you said earlier, he didn't know they were ten pounds. >> though dogs have a lot of heart and soul and will. doesn't matter how big they are. up next on "american morning," nasa's space shuttle is about to be retired for goose as we know. what comes next for the future of space exploration? we will get some insight. (screams) when an investment lacks discipline, it's never this obvious. introducing investment discipline etfs from russell. visit russelletfs.com r a prospectus, containing the investment objectives, risks, charges, expenses and other information. read and consider it carefully before investing.

vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve

the military, veterans, and their families is without equal. begin your legacy. get an auto insurance quote. u.s.a.a. we know what it means to serve.

snoetle ♪ the shuttle crew waking up to this song. all that is left is the touchdown scheduled before 6:00 a.m. eastern time tomorrow morning. we will cover it live right here on cnn. joining me now to talk about tomorrow's landing and more importantly where space exploration goes from here is administrator charles boldin.

thank you for being here and good to see you again. let's talk about this for a second. you know, clearly not enough people have heard this message because i hear a whole bunch of people telling me there is no space -- there is really -- nasa has nothing on the books, nothing is happening in the future and that is because there was a plan and it was sort of dismantled. right from your lips, what is nasa up to after that space shuttle launch tomorrow? >> ali, you're absolutely right. we have just not done a good job of telling our story. nasa is very busy. my number one job right now is to ensure that we safely get "atlantis" and her crew on the runway tomorrow. i will have tears of joys and cheers of sadness at that time but the tears of joy will be because we are already working with commercial companies to put cargo on the international space station as early as next year. we are working with other commercial companies to put american astronauts and our partner astronauts on the international space station in

four or five years that way. we will be continuing to operate the international space station between now and 2020 and nasa working on a heavy-lift launch vehicle and multipurpose crew vehicle to get our astronauts below the earth of orbit. the president set to us 2025 for an asteroid and 2030 to mars. we have a lot of work to do ahead. >> when we talk about energy problems here on earth and we talk about the financial problems, so many times, commentators will say we need to approach it the way we approach the space program or putting a man on the moon. why does it feel nebulous right now? why does it feel that we don't have that same surge forward that we had, whether it was putting a man on the moon or the space shuttle program? and part of that is because of the 2025 goal for an asteroid i don't think you have a bunch of kids saying i want to go asteroid. is that part of a bigger push? >> the kids i talk to are pretty excited about that.

nasa are focused on stem education, promoting that for the students of america so we can -- >> by the way, you mean -- let me just -- >> world of science and math. >> science, technology and engineering and math. remarkable. a lot of astronauts out there do tend to be not only fighter pilots, ex-fighter pilots but increasingly engineers and people with science backgrounds? >> absolutely. and doctors. we need all kinds of people. but we have got to be able to out-educate and out-innovate and that means new ideas and nas is a full of new ideas. everything is not invented here. we are trying to bring in commercial companies and working strongly with institutions, colleges and institutes to get us to get a vehicle and cut edge. we have to build this economy to

get it back to where it's strong and people believe in it. we're very optimistic at nasa. we just want the rest of the country to join us. you know, it's exciting what we're doing. >> when you talk about a heavy-lift rocket, you're talking about something that goes -- the space shuttle is still low earth orbit. you're talking about something. and why you're excited about the asteroid because it's beyond that. you are a bit of a science geek. tell the rest of the world right now what it is you plan to discover on an asteroid so we can get excited about it. >> well, we need to understand asteroids. there is a satellite dawn giving us views we have never seen before. asteroid are rocks and they threaten earth. we need to understand them so we know how to get rid of them if we have to because it would be a bad day if an asteroid struck our earth. we also learn a lot about our solar system and planet earth by studying the asteroid that is remnants of some of the other planets. we need to go to other planets.

we are always trying to understand where did we come from and what else is out there and what can we maybe life on earth better. that is our focus but we have to go to other places if we want to understand our own earth. >> charles boldin, i hope you didn't take it personally i called you a science geek. i meant that in the warmest way. >> actually, i'm impressed. i'm not a science geek. i wish i were. my son and daughter are the science geeks. >> fair enough. they are following good footsteps. thank you for joining us. charles bowlin is the administrator of nasa. jacqui jeras is in the extreme weather center for us right now. >> she is following what is a growing heat wave, right? you said it's pretty nasty out there and we're looking for it to get worse as the week progresses. >> we have been talking all week a number of states have been in the teens, right? for heat advisories today? we are up to 23! 32 states across the u.s. are under some type of heat advisory, excessive heat warning, or excessive heat

watch. the nation's midsection continues to get the brunt of it today, feeling like 110 to 120 degrees. dangerous heat. then the northeast is heading your way by tomorrow. best thing i can tell you, at least parts of the upper midwest here will have some relief by tomorrow. now, in terms of thunderstorms, that is where we are going to see the worse of it up across the upper midwest. isolated thunderstorms possible later today and pop-up thunderstorms across the southeast could impact your commute. this is the best video i've seen all day. you got to watch this. there was some really heavy rain in montreal yesterday, up to a foot of it, and it really tested the sewer system! it kind of created geysers. we have seen this before but check out this car. the force from the water coming up so strong, it actually lifted this car up off of its wheels! just amazing pictures! can you believe it, guys some i've never seen anything like that before. >> i'm wondering how you explain

that one to the insurance company. what happened was -- >> good thing somebody got it on video. >> jacqui, thank you. >> here is jacqui. she was just on our tv. this is my ipad and we are able to stream live cnn. >> that is car she was just showing. >> exactly. it's a small delay but not much. this is what we were talking about two seconds ago. you can have "headline news" streaming as well. this is an app for the ipad and iphone and just through cnn.com. >> there is jacqui. we were just talking to her. >> this is kind of freaky actually. the new streaming service is currently available to about 50 million people who subscribe to certain cable providers. comcast does it and cable vision and others like that. you can head to our website for a list to see if your company is one of them and if that is the case, you can, as long as you have a wi-fi connection, you can

watch cnn from your tablet which is amazing. this is the start of where a lot of this is going. >> the future. >> the future. >> is in your hands. >> can you take this to the asteroid with you. i don't know if you get a connection up there. still to come on "american morning," some of the nation's standout teachers are leaving the classroom for good, but why? >> it's demoralizing to you. you know, you wonder why you put all this energy into it and, yes, the kids appreciate you and the kids love you for it, but at the end of the day, i still have to pay my bills. >> we will take a look what can be done to keep teachers from quitting.

24 minutes after the hour. "minding your business." american airlines just announced it has placed the largest aircraft order in history. reportedly worth $37 billion. the order is for 460 narrow bodied jets that will be split between boeing and airbus. american airlines is expected to have a press conference later today to provide more detail. the number of mortgage applications acreased last week from the week before. down to their lowest level of the year. the average interest rate for 30-year fixed rate mortgage is 4.5%. these states under a review for a possible credit downgrade by moody's investors services. saying they are the most vulnerable for the debt ceiling talks in washington because they rely on heavy funding in contracts. philip morris and black rock report earnings in the next hour before markets open.

american express, ebay and intel report their earnings after the closing bell this afternoon. check in on markets right now. stock futures are higher. alp earnings last night lifted the tech sector this morning and investors still feeling "american morning" is back after the break. now you can apply sunblock to your kids' wet skin. new neutrogena® wet skin kids. ordinary sunblock drips and whitens. neutrogena® wet skin cuts through water. forms a broad spectrum barrier for full strength sun protection. wet skin. neutrogena®.

really? 25 grams of protein. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure high protein. ensure! nutrition in charge! on our car insurance. great! at progressive, you can compare rates side by side, so you get the same coverage, often for less. wow! that is huge! [ disco playing ] and this is to remind you that you could save hundreds! yeah, that'll certainly stick with me. we'll take it. go, big money! i mean, go. it's your break, honey.

same coverage, more savings. now, that's progressive. call or click today. yoo-hoo. hello. it's water from the drinking fountain at the mall. [ male announcer ] great tasting tap water can now come from any faucet anywhere. introducing the brita bottle with the filter inside.

we're crossing the half-hour. british prime minister david cameron under fire this morning. opposition leaders demanding he apologize for hiring andy coulson. cameron says it will only apologize if it's proven that coulson lied to him about hacking practices. it wasn't was the back and forth was earlier this morning between cam ron and all aboutour party lead ed miliband. >> we have a well-led police investigation which will examine criminal behavior by the media and corruption in the police. under law the judge to establish

what went wrong, y, awhy and whe need to do to ensure it never happens again. >> was warned and he preferred to ignore the warnings. so that the country can have the leadership we need. why -- why doesn't he do more? why doesn't he do more than give a half an apology and provide the full joapology now and for hiring mr. coulson and bringing him heart of 10 downing street. >> the talks come one day after the house passed a cut, cap and balance plan. the bill moves to the senate where it is expected to die a quick death. the fbi arresting 16 alleged computer hackers. most were thought to be part of the group anonymous. that group is the one that claims to have attacked paypal and a number of credit card web sites. over the next decade, more than half of our country's 3.2

million teachers will be retiring. perhaps more disturbing is the number of teachers who are deciding to call it quits even before they hit retirement age. >> we take a closer look at the financial challenge that the nation's teachers face. natasha curry joins us live from atlanta. good to see you. what did you find? >> good morning. you know? we used to think that teachers had it made. week-long breaks and reduced work hours, summers off. well, that's not the case any more. i sat down with an award winning high school teacher in florida. she loves her job and the kids she teaches but struggling to make end's meet and she told us about a tough decision she's had to make. >> of any angle is what? >> my name is linda darling. i've been teaching for 13 years. my first year of teaching, i got an award called rookie teacher of the year. later on, i got teacher of the year again. i've gotten a hundred percent pass rate in the ab calculus for the past seven years. >> reporter: by all accounts, linda one of those high

performing teachers we all want our children to have. >> this was a book in my first year of teaching, the students. >> reporter: but on a salary of 38,000 a year after taxes leaves her with about $2,400 a month she says she can no longer stretch her paycheck to cut expenses. >> when you talk out utilities and car payments there is nothing left. it's demoralizing to you. >> reporter: after five years without a raise, linda has decided to call it quits and going back to school to become a nurse and will earn on average about $62,000 a year and 24,000 more than what she makes now. how hard was it to make that decision to leave? >> it's heartbreaking. i'm probably not going to get through this one. >> reporter: i'm sorry. >> reporter: in the past ten years, the average salary for a u.s. teacher has only increased 3.4% in today's dollars. and in some states like florida,

the average is average dropped. for many teachers, summer is no longer about taking breaks, but finding extra work to make end's meet. some educators bring stagnating wages for teaching's high turnover rate. every year 14% of u.s. teachers leave the profession. 46% leave before their fifth year on the job. >> when you look at high achieving countries, their turnover rates are 3% or lower. so they work very, very hard to not only attract teachers that are -- that they suspect are going to be successful, but they work incredibly hard to train them and then they do whatever it takes to retain them and we don't do that. >> i'm not saying they may not find an amazing teacher to replace me who also motivates the kids and who also inspires the kids and who also loves the kids. but what if they don't? who pays the price? >> reporter: we all have one of those teachers, right? who just inspired us. linda is one of those teachers and now enrolled in nursing

classes this summer and if she gets accepted into the nursing program, she will officially leave her teaching job at the end of this year. she says she has the support of her principal who actually told her, i'd rather have you for a semester than not have you at all but she has faced criticism from some of her students who fear they will not pass the exam without her as a teacher. >> a lot of people say we have to figure out solutions here. what can our country do to keep the high quality teachers like linda from walking out the door. you'd think we pay them more. that is one way, right? >> reporter: that is the great question. the woman you saw in the piece there is the founder of the teachers salary project and says among all of these seemingly scary statistics there is an opportunity in order to fill these teacher gaps. she says america needs to learn from top scoring countries like singapore and finland and put more emphasis on making teaching an attractive profession to top college students. they get students while they

train and the government regulates the supply and demand for teachers, so students are guaranteed jobs and then lastly, they offer highly competitive compensation. you mentioned all of these things makes the profession way more prestigious than here in the united states which is a reality. >> a demand for teachers here but the state budget conversations the last several months is teachers' benefits and salaries are being claude back. thank you for joining us. >> thank you for having me. coming up ahead on "american morning," he says he was called to run. texas governor rick perry, could he be the gop's savior in 2012 if he jumps into the race? we are going to show you why rick perry, the man in front of you, could be a game-changer.

right now. a lot of republicans, especially those on the powerful christian right are now saying texas governor rick perry is really their best shot to beat president obama in 2012. >> the decision is going to be made pretty soon he says. in a "the wall street journal"

poll, perry is running third behind mitt romney and michele bachmann. the interesting thing is perry is not even in the race. >> is there a whole name recognition factor. you said he hasn't declared. jim acosta is live for us in austin. what is the appeal of rick pe y perry? >> reporter: i talked to texas represent leaders down here yesterday. they point out rick perry has never lost an election. when you look at that poll you just threw up there you can tell he has serious appeal across the country among gop voters. aides to the texas governor said he should have a decision by the end of the summer as to whether or not he is jumping into this race. if he gets in, his faith just might take center stage. >> reporter: for republicans, dissatisfied with the field for 2012, it could be divine intervention at a press conference texas governor rick perry confirmed what he recently told an iowa newspaper that is he feeling called by his faith

and his friends to run. >> there's a lot of different ways to be called. my mother may call me for dinner. >> reporter: there was no religious overtone? >> oh, no. i don't ever get confused that i'm a man of faith. texas is where the game is being played. >> reporter: gop insiders see a pro business governor who scores with both tea party activists and christian conservatives. when perry announced new jobs coming to the state's high tech community this week, he got a cameo playing quarterback in a college football video game. but it's what he will do on another playing field has come under scrutiny. a stadium in houston next month he plans to lead a day of prayer an event dubbed the response for what organizers call a nation in crisis. >> we need god's help. that's why i'm calling on americans to pray and fast like jesus did. >> reporter: the critics say the response blurs the separation between church and state and point to the controversial statements made by some of the events official endorsers including one pastor who called

the statue of liberty a false idol. >> that is an idol, a demonic idol in the middle of new york harbor. people say, well, no it's patriotic. what makes it patriotic? why is it? it's a statue of a false god ess. >> just because you endorse me doesn't mean i endorse everything you say or do. >> he is hitching himself up to it. some dogs are too ugly to hug but he seems willing to do it. >> reporter: democrat jim hightower was beaten by perry for agriculture commissioner more than 20 years ago. he says perry's talk call to run is an obvious appeal to christian conservatives tried by another texas governor, george w. bush. >> i don't know what he bhefs. i know he has positioned himself far to the right of george w. >> reporter: pastor bob plans to attend the governor sees

something else. >> i believe it's absolutely a possibility that god to be speaking to him. >> reporter: to have him run for president? >> yes. possibility? absolutely. >> reporter: and if you take a look at rick perry's schedule these days, you can tell he is making a serious run at this, taking a serious look at whether or not to make a run for the white house. he had a video conference with some south carolina pastors yesterday. fund-raising dinner last night with some potential presidential donors. he is out in california doing the same today. and, you know, there is a saying down here, that everything is bigger in texas. well, so is the speculation swirling around rick perry right now. >> also it's a timing issue, too, right? while everybody is sort of absorbed in washington dealing with the debt ceiling is probably not the time to get maximum exposure. >> reporter: that's right. you know, obviously, he is not going to get a lot of exposure right now with everything that is going on in washington. i have to tell you when held that press conference the other day in austin, his first press

conference in several weeks he had all of the texas media here and remarked at his bill signing boy, a lot of cameras here for a garden bill signing and not something we see every day in austin. he is getting more attention these daes and that is only going to get much more intense as he gets closer to making his decision. >> jim acosta, thank you for that. a story we will cover closely, obviously, as this race continues. >> absolutely. ahead, looks like the nfl lockout is about to end but the long work stoppage hitting right at the economic heart of a town in upstate new york. this is why they call it extreme sports. a motocross rider flies off his bike in mid air. check it out. what happens to him? you have to wait until the other side of the break to find out.

44 minutes past of the hour. a look at your headlines this morning. david cameron face-to-face with parliament this morning fielding some tough questions about the uk phone hacking scandal. one opposition leader questioning the prime minister's ties to news corp. demanding he apologize for hiring former "news of the world" executive andy coulson. cameron says he will only apologize for that hiring if it's proves that coulson lied to him about hacking at the tabloid. a meeting comes a day after the house passed a bill that would put strict caps on future government spending and also make it tougher to raise taxes. that bill, though, is not expected to make it out of

senate. first day of school postponed in memphis. the school board voted to delay the start of the year until the district gets $55 million it says the city owes it. we have a check in on the markets right now. futures are trading higher ahead of the opening bell. apple stellar quarterly earnings lifting the tech secretarior this morning. investors still feeling optimistic over progress in the debt ceiling talks in washington. you're caught up on today's headlines. "american morning" will be back after the break.

don't you know, kiran, how much i like chicago? you love chicago. >> but not today. it is a beautiful summer day at

79. what is not to love? >> until later when it hits 99. >> unbelievable. 99 in chicago and across much of the midwest. they had a thunderstorm through there this morning but still didn't help. >> you have to go to san francisco and other parts of california will feel cool compared for to the rest of the country. it appears the nfl lockout has come to an end and welcome news for football fans everywhere. >> the nfl may have saved its season but on for small towns like courtland, new york. the damage may have been done. poppy harlowe is following the story. here she is. >> reporter: last summer, courtland, new york, looked like this. but this year, it won't look anything close. >> it's like royalty coming in to town for us. >> reporter: population 19,000, it's home to the new york jets training camp since 2009. >> coming up here, you know, it

exceeded our expectations. >> reporter: a year ago, this field was full of jets players running drills and working out and attracting 41,000 spectators who filled the local bars and restaurants. but this year, there's none. in the midst of the nfl lockout, jets management canceled training camp here. telling cnn money the planning is extensive. something they couldn't focus on during the lockout. >> america loves football and, you know, we really missed out big time. >> it was heartbreaking, you know? you got 250-pound pro athletes walking down the street and amazing they are in your restaurant. >> reporter: a major blow to this tiny economy. >> i could have anticipate 20% loss. talking millions of dollars for these small businesses. >> reporter: jets training camp brought in 5.8 million to courtland in three weeks. nearly 5% of the entire county's annual budget. >> the best month we had pedestrian sanchez had just

signed a contract. >> reporter: oh, really. >> all of the fans we see at all of the restaurants we go to, it's really too bad. >> reporter: jets training camp effectively created a tourism business where there wasn't one. tell me what the moment was like when you found out the jets were bringing their training camp here? >> well, i think my just jaw dropped. i think it's been my favorite team for years, over 30 years. i just can't even explain the emotion. >> reporter: courtland isn't the only town hurt by the lockout. the baltimore ravens have canceled their training camp in westminster, m.d. at least the 2.2 million dollar hit for the city. the new york giants aren't training in al ban ni, new york. meaning a loss of at least a million bucks for the state's capital. between the jets and the giants, the economic impact in new york is so big, the state attorney general has launched an anti-trust investigation into the nfl lockout saying it will inflict significant economic injuries statewide. as for folks here in courtland,

they can't wait until next year, when the jets come back. >> courtland is jets green now. >> reporter: the jets are planning to come back to courtland next year and extended their contract with the town bye year because they missed out on training camp this year. when you look how significant it is for this city, it is such a big part of gnome the excitement but the money that is brought into the small town. it's not the only up with. there is a number of towns across the country where this is happening. interesting there. one interesting note the man that runs that doug's fish frip the jets personally called him said since we can't come up to you in courtland will you bring your straent and the trailer down to us? he will go down next week and feed them in new jersey. the expectation the lockout will end. >> all signs pointing to it will be over and finally enjoy football. what is your team? >> vikings. hello! purple! super bowl this year! >> what is your favorite fast food indulges? >> cheese curls. i'm from minnesota, don't you know? >> see that?

>> and like the poutine. it is french fries with cheese curd and burnt gravy hot melting the whole thing. >> i'm not from buffalo and i don't know why i have a fixation with buffalo wings but delicious. check this out. motocross would be a lot more challenging if theta stop button. they know how to land. they do this for a living. there he goes. this happened at a race in minnesota. don't you know? poppy? his bike falling 30 feet to the ground. he got back on, there he is getting back on after that fall and getting back on the bike to finish the race. >> incredible the bike is still working and he is still working. coming up, you know what we got? >> a guy tries to give rupert murdoch with a pie in the face. jeanne moos has her take on this

close shave. check this out. kiran showed this to us earlier. it's bigger, it's brighter. cnn.com/video. we will be right back. [ dr. ling ] i need to get the results from the m.r.i. see if the blood work is ready. review ms. cooper's history. and i want to see katie before she goes home. [ male announcer ] with integrated healthcare solutions from dell, every patient file is where dr. ling needs it. now she can spend more time with patients and less time on paperwork. ♪ dell. the power to do more. [ engine idling ] [ male announcer ] talking a big game about your engine is one thing. having the proven history that can back it up is a whole nother story. unsurpassed torque... best in class towing... legendary cummins engines. which engine do you want powering your truck?

guts. glory. ram. britta olsen is my patient. i spend long hours with her checking her heart rate, administering her medication, and just making her comfortable. one night britta told me about a tradition in denmark, "when a person dies," she said, "someone must open the window so the soul can depart." i smiled and squeezed her hand.

"not tonight, britta. . ♪ yeah, let's check out the horses under the hood! show me the carfax. show me the carfax. horsepower, foxpower, same thing. just show me the carfax. before you buy a used car, get a carfax vehicle history report. see accidents and service reported to carfax... and a price based on the car's history. free, at thousands of reputable dealers. just say, show me the carfax.

55 minutes past of the hour right now. a look at atlanta where it is 82 degrees. i feel like we have pretty much been on the same forecast. a chance thunderstorms. >> this part of the show is not live, it's taped. we're about to be live starting right now. we have been asking you all morning what your favorite fast food guilty pleasure is. we have a ton of responses to this question. normally, we talk about politics and things serious. >> we are giving them a braeng fr break this morning.

>> lynn says i love this. i want it right now! >> when we were in manchester, new hampshire, they have it there and known for it. five guys burgers and fries. she calls herself laidbigmac. maybe lady five guys next time. >> natalie who is actually on tv right now in san antonio, this one is right from my heart. all of the good stuff. sodium, calories, fat, everything you need. >> if you didn't get enough sugar there is the mountain dew. >> paul writes it has to be the mcrib sand wish. i have to eat two at a time and use the oxiclean to get the bbq sauce evidence off my shirt. >> if i'm stopping to grab something quick it has to be a five-layer beefy burrito from taco bell.

so good! >> a lot of taco bells. >> a lot of big macks in there. people saying they have a big mack craving every one or two months. in moderation. not encouraging this as your daily intake. rupert murdoch's close shave. people are talking about this as the most dramatic moment in the phone-hacking scandal. >> his wife is drawing raves. she smacked the pie-wield iing d smacked him. here is jeanne moos. >> reporter: wendi murdoch was easy to pick out in pink. when you are 38 years younger than your husband, it is nice to rub his back and pour him water before he testifies. she even restrained him when he pounded the table too much. but she didn't restrain herself when this happened. >> no, no. no! oh! >> reporter: an activist pulled a plastic-filled pie plate out of the plastic bag. some of that foam landed on cnn

producer jonathan wald as the atechnicaler. >> squarely plunges it into the face of rupert murdoch. >> reporter: that's when his wife pounded that attacker in the face. even in the back with the plate! reminds us of a woman who used her purse to knock the gun out of her hostage-taker's hand. at a school board meeting. apart from shaving cream, all rupert murdoch got was a tongue lashing from his attacker. johnny marble had just september a tweet saying. it is a far better thing that i do now than i have ever done before hash tag splat. it may have been more than a close shave for rupert murdoch, but at least he avoided major embarrassment by getting his face full off camera. unlike pie targets like anne

coulter and ralph nader who managed to throw his pie back at his attacker. bill gates got splattered and then his image got splattered for eternity all over the internet. anita bryant got pied by a gay demonstrator. >> at least it's a fruit pie! >> let's pray for him right now. >> reporter: first her husband prayed for the attacker and went outside and splattered him back. wendi murdoch was praised by a member of parliament. >> very good. or was it her right regardless? a prankster temporarily changed her wikepedia entry to say. this move is referred to as the crouching wendi, hidden dragon. after the attack, wendi carefully cleaned off her husband. >> carefully wiping the foam off his jacket and his face. she was smiling and seemed quite happy she had managed to score a blow. >> reporter: we watched her